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The pound may benefit a little bit if there is a sign of a deal coming on Wednesday

Mark Cranfield, Bloomberg’s MLIV strategist

"If today’s run of UK data lends the pound further support GBP’s winning streak could continue."

Sterling first improved last week following UK Prime Minister Theresa May's speech during the Conservative Party Conference. She said the "resilience and ingenuity of the British people will see us through" negotiations with Brussels.

There has been a mixed outlook from the International Monetary Fund (IMF) which has served to lower trader confidence.

“An intensification of trade tensions and the associated further rise in policy uncertainty could dent business and financial market sentiment, trigger financial market volatility, and slow investment and trade.”

The EU’s expected release of its final Brexit draft today could be a key breakthrough for talks.

Bloomberg’s MLIV strategist Mark Cranfield said: “It’s definitely a very big day. I mean, if [Michel] Barnier doesn’t say that there is something there to work on then a deal is even further away than it seemed a couple of months ago.”

He added: “The pound may benefit a little bit if there is a sign of a deal coming on Wednesday.”

But Cranfield warned there could be a “rocky road” ahead for the pound. He said: “Don’t expect that to be the final document and there will be both sides looking for a few advantages over the next couple of weeks.

The next major Eurozone data to watch out for will be Thursday’s release of European Central Bank (ECB) meeting accounts.